Regulator must ensure that manipulative activities are curbed in commodities market, says FM
Updated: Sep 28, 2015 02:00:32pm
Mumbai, Sept 28 (KNN) Finance Minister Arun Jaitley, who formalised today the official merger of FMC with Sebi, said the regulator must ensure that manipulative activities are curbed in this market and expressed confidence that NSEL-like problems would be dealt with effectively.
He said amalgamation will bring convergence of regulations in the commodities and equity derivatives markets.
"The merger will increase the economies of scope and scale as there are strong commonalities between all kinds of trading. I am sure that Sebi is prepared to regulate the commodity derivatives market," he said.
"It would be a challenge for Sebi because this is an additional responsibility, but Sebi has matured over last two decades to take on (such responsibilities," Jaitley said.
Jaitley said, "As this underlying physical market is widespread, fragmented and unregulated for certain commodities, Sebi needs to have a proper mechanism to capture any aberrations in the physical market that would disrupt the derivatives market."
He said that markets thrive where there is confidence and integrity and this requires transparency and good regulations.
"Farmers, producers and consumers need to have confidence that derivatives market is free from manipulations and market abuses. I am sure that Sebi would be successfully able to handle the additional responsibility entrusted to them," the Finance Minister said. (KNN Bureau)
He said amalgamation will bring convergence of regulations in the commodities and equity derivatives markets.
"The merger will increase the economies of scope and scale as there are strong commonalities between all kinds of trading. I am sure that Sebi is prepared to regulate the commodity derivatives market," he said.
"It would be a challenge for Sebi because this is an additional responsibility, but Sebi has matured over last two decades to take on (such responsibilities," Jaitley said.
Jaitley said, "As this underlying physical market is widespread, fragmented and unregulated for certain commodities, Sebi needs to have a proper mechanism to capture any aberrations in the physical market that would disrupt the derivatives market."
He said that markets thrive where there is confidence and integrity and this requires transparency and good regulations.
"Farmers, producers and consumers need to have confidence that derivatives market is free from manipulations and market abuses. I am sure that Sebi would be successfully able to handle the additional responsibility entrusted to them," the Finance Minister said. (KNN Bureau)
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